Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Interview Notes Carl, age 46, and Monica, age 42, are married and will file a joint return. They have two children, Adriane and Robert, whom

Interview Notes
  • Carl, age 46, and Monica, age 42, are married and will file a joint return.
  • They have two children, Adriane and Robert, whom they will claim as dependents on their joint return.
  • Monica's cousin, Michael (age 29), came to live with them in July 2018. Michael does not qualify as their dependent, but they paid $500 of Michael's medical bills in November 2018.
  • Carl was enrolled all year in an HDHP with family coverage.
  • Carl has had an HSA for four years. He has no other health insurance.
  • In 2018, Carl made regular contributions to his HSA totaling $4,000.
  • In 2018, Carl took $1,800 from his HSA to pay the following medical expenses:
    • $300 to purchase Monica's eyeglasses (needed for medical reasons).
    • $725 health club membership for Carl.
    • $250 for over-the-counter eye medicine for their son, Robert (no prescription from doctor).
    • $525 for Adriane's physical therapy sessions.
  • Carl, Monica, Adriane, Robert, and cousin Michael are all U.S. citizens and have valid Social Security numbers.

9. The adjustment to income on Form 1040, Schedule 1, line 25 for Carl's HSA deduction is:

A. 1,800

B. 3,400

C. 4,000

D. 6,750

10. Whose qualified medical expenses can Carl include for HSA purposes?

A. Carl

B. Adriene and Robert

C. Carl, Monica, Adriene, and Robert

D. Carl, Monica, Adriene, Robert, and Michael

11. On his Form 8889, Carl can include the $300 to purchase Monica's eyeglasses as a qualifying medical expense for HSA purposes. T/F

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Accounting questions